In an earlier vote, the Commission found that lamb meat is being imported into the United States in such increased quantities as to be a substantial cause of the threat of serious injury to the domestic industry producing lamb meat. We now must recommend the action that would address the threat of serious injury to the domestic industry and be the most effective in facilitating the efforts of the domestic industry to make a positive adjustment to import competition. We have considered the relevant factors set out in the statute, the written and oral submissions of all parties, and the other information obtained in this investigation.

We recommend the following action:

(1) That the President impose an increase in the tariff rate applied to imported lamb meat over a four-year period, so that imports will be subject to a dutiable rate of 22 percent ad valorem in the first year of relief, 20 percent ad valorem in the second year of relief, 15 percent ad valorem in the third year of relief, and 10 percent ad valorem in the fourth year of relief.

(2) That the President identify and implement other action authorized under law that is likely to facilitate positive adjustment to import competition. Specifically, we recommend that the President take action to ensure that the National Sheep Industry Improvement Center is fully operational, and make additional assistance available through other Federal programs, primarily those administered by the U.S. Department of Agriculture. We will provide details on such adjustment measures in our written views on remedy.

While these actions are in effect, we would expect the domestic industry to take all steps within its power to carry out the adjustment plan it submitted to the Commission. This adjustment plan is ambitious and contains numerous ideas potentially of significant benefit to the industry's long-term viability. Of note, we urge the industry to take the necessary steps to institute an industry-wide check-off program to generate a pool of funds to promote increased lamb consumption.

With respect to imports covered by our recommendation, we note that we have made negative findings with respect to imports of lamb meat from Canada and Mexico under section 311 of the NAFTA Implementation Act. Also, our findings and recommendations do not apply to any imports of lamb meat from Israel, or to any imports of lamb meat entered duty-free from beneficiary countries of the Caribbean Basin Economic Recovery Act or the Andean Trade Preference Act.